MobiKwik IPO sparks 119x demand, becomes India's second-hottest tech listing ever

The IPO of One MobiKwik Systems Limited has set a new benchmark for India’s tech startup listings, emerging as the second-most subscribed new-age tech IPO in the country.

As of the latest update, the offering has been subscribed 119.38 times, surpassing the previous records of companies like Unicommerce and Awfis.

On December 13, 2024, the third day of subscription, data revealed cumulative bids were placed for over 141 crore shares, compared to the 1.18 crore shares on offer.

Retail Individual Investors (RIIs) showed the most confidence, subscribing 134.67 times their portion while Qualified Institutional Buyers (QIBs) subscribed 119.5 times their allocated shares. Non-institutional investors also exhibited strong demand, oversubscribing 108.95 times.

In comparison, Unicommerce's IPO saw the highest subscription at 168.39x, while co-working space operator Awfis, in the third spot, garnered 108.56x subscriptions. Travel platform Ixigo also experienced substantial interest, with its IPO subscribed 98.34x.

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MobiKwik is seeking to raise up to Rs 572 crore through a fresh issue of equity shares.

The IPO consists solely of a fresh issue, with no offer-for-sale (OFS) component. This means the existing promoters and shareholders, including Co-founders Bipin Preet Singh and Upasana Rupkrishan Taku, are retaining their stakes.

Of the total proceedings, Rs 150 crore is allocated to strengthening MobiKwik's financial services, including its digital credit offerings like MobiKwik ZIP and ZIP EMI, aimed at retail and SME clients through a Default Loss Guarantee.

About Rs 135 crore of the proceeds will also go towards funding organic growth in its payments vertical remains Mobikwik’s core business. The net proceeds will also fuel investments in AI and machine learning capabilities to enhance user experience and bolster fraud prevention mechanisms.

While Mobikwik posted a loss of Rs 6.6 crore in Q1 FY25, leadership remained confident in sustaining long-term profitability. The company has reduced its fixed costs from 47% to 30% of revenue and achieved improved gross margins—19% for the full FY24 and 16% in Q1 FY25.

MobiKwik saw its revenue surge 62% to Rs 875 crore in FY24 compared to Rs 539 crore in FY23. The Gurugram-based startup also bounced back to profitability with a net profit of Rs 14 crore in FY24 as opposed to the Rs 84 crore loss recorded in the previous fiscal year, according to RoC filings.

(The copy was updated with additional information.)